The stock exchange of Malaysia will be working with bank stakeholders in developing Southeast Asia’s first blockchain proof-of-concept (POC) for securities borrowing and lending, according to reports.

The project will explore blockchain technology to enhance transparency and also make the securities borrowing and lending market more efficient, the Malaysian stock exchange has said.

Moving to a blockchain-based platform would help Bursa Malaysia increase the speed and capacity in securities lending supply and borrowing demand.

The proof-of-concept, which would involve many banks and other capital market participants, is being developed with the bourse’ technology partner, a Shenzhen-based IT firm.

The bourse’ chief was quoted as saying that the SBL market is ripe for disruption through blockchain and could have a considerable impact, citing studies done on the subject.

There has been a growing adoption and application of DLT in Malaysia over the past year. According to website OpenGov Asia, the Malaysian government has plans to deploy blockchain in various fields from the tracing of agricultural products to auto insurance.

Malaysia has plans to convert 835 acres in Malaysia’s Malacca Strait, which will then be known as the Melaka Straits City, into a “tourist blockchain-city” of the future, with support of the Chinese government and several major corporations, according to news reports.

The project estimated to cost $120mn is planned to become the first blockchain-city in Asia and it will have its own native currency, DMI token.

Malaysia has unveiled several key initiatives in the blockchain space of late.